9 Enterprise: Money, Debt and Banking Flashcards
What is interest?
A sum of money paid regularly at a particular rate for either the use of money lent, or for delaying the repayment of debt
What is a secured loan?
A loan that is backed by an asset. The lender may sell the secured asset to get money back if the borrower cannot repay the loan debt
What is an unsecured loan?
A loan for which no asset has been used as financial security. The interest rate is usually higher than for a secured loan as there is a higher risk of the lender not getting their money back
What is a PIN?
(Personal Identification Number). A number used as a security access code for phone banking and to withdraw money from an ATM or via EFTPOS
What is card skimming?
The illegal copying of information from the magnetic strips found on credit and debit cards
What is phishing?
Emails or text messages that attempt to trick people into giving out personal information, including passwords or banking details
What is a savings account?
A deposit account at a financial institution that offers a higher interest rate than most basic transaction accounts, designed to increase savings
What is a Marginal Tax Rate?
The highest rate of tax a taxpayer can pay on their income
What is a TFN?
(Tax File Number). A unique identifying number assigned to a taxpayer by the Australian Taxation Office (ATO) for tax administration. You need to quote this number to employees, benefit and allowance providers, banks and other investment bodies
What is a Credit Limit?
The maximum amount of credit that a financial institution will extend to a client
What is a Debt Agreement?
A legal agreement between you and all of your unsecured creditors for the repayment of unpaid debts that is less formal than bankruptcy. It allows you to pay back your debts over an extended period of time at an affordable amount
